Employment through procurement. Results and lessons learned TMALL 0145 Presentation Widescreen v 1.0

Transcription

1 TMALL 0145 Presentation Widescreen v 1.0 Employment through procurement Results and lessons learned

2 Procurement strategy development and direction Competition Step 1 Competition Stage 2 Competition and collaboration Stage 3 International competition and collaboration Stage s Organisation focus Project focus Process focus Developed business forms and project management Life cycle focus Sustainability Industrial approach 2

3 Purchasing at Trafikverket some facts billion SEK construction plus 1.5 billion SEK IT and 1 billion SEK material 30-35% of the construction market in Sweden 700 tendering processes (plus 700 second competition processes and call-offs) suppliers 2200 ongoing construction projects Warehouse and distribution of articles 622,5 billion SEK (+100 billion SEK) requires additional annual manpower i.e per year 3

4 The Swedish Transport Administration shall work to achieve increased employment The government has appointed the Swedish Transport Administration, in public procurements, to work to achieve increased employment for persons who have difficulty in entering the labour market and thus contribute to reducing unemployment. The model has been implemented nationally by the Swedish Transport Administration with effect from

5 How Trafikverket implemented Workshops with the industry and trade unions Steering group meetings Project meetings Collaboration between the Swedish Transport Administration, employment offices and the National Agency for Public Procurement STEERING GROUPS 1. Proprietors committee (Swedish Transport Administration) 2. Employment Office Service 3. National Agency for Public Procurement PROJECT GROUP Management: Swedish Transport Administration Purchasing and Logistics Swedish Transport Administration: HR, Maintenance, Investment, Large Projects, Planning, Purchasing and Logistics, Legal, Communication Employment Office Service: Integration & Communication SPONSOR Purchasing Director REFERENCE GROUPS 1. Union representatives (Swedish Transport Administration and central) 2. Industry representatives (Sveriges Byggindustrier, Maskinentreprenörerna, Svenska Teknik & Designföretagen, Företagarna) 5

6 Persons who gain employment shall fulfil one or more of the following criteria Unemployed and registered with an employment office. Shall undergo a practice or apprentice period within the framework for training or according to the directions of an employment office. Has a position that does not correspond to the training and/or experience and expertise that the person has, but can be matched to a service that will be offered in the contract. 6

7 Model Basics: Requirement: Meeting with the employment office Incentive: In the form of a bonus* if employment above requirement level is created. Employment requirement (incl. bonus and penalty*): Contractor: 1 position per SEK 50 million (corresponding to 1 position per 15 full time employees) Service/Consultant: 1 position per SEK 25 million (corresponding to 1 position per 25 full time employees) *SEK 60,000 for practice places (6 months) and SEK 240,000 for employment (12 months) 7

8 Bonus and penalties Bonus is paid for employment above the requirement level (positions defined in the contract) Penalties claimed when requirements are not fulfilled Type of employment Bonus/Penalty per place Employment (12 months) SEK 240,000 Practice (6 months) SEK 60,000 Bonus is normally paid annually after verification of employed persons and after any requirements have been complied with. Penalty assessment occurs after the end of the contract. All requirements must be complied with or a full penalty per position is payable. 8

9 Exceptions Contracts that shall not contain employment contract clauses: Service and contract procurements with an implementation time of less than 9 months or where implementation requires max 5 full time employees (excluding options). All framework agreement procurements, call-off orders or procurements of goods are also exceptions. 9

10 Positions length and distribution The guideline is that at least half (50%) of the positions per contract go to employment and the rest as practice places. Length of employment: Each position that shall represent an employment shall correspond to a full year s service (1,720 hours) Length of practice: Each place that shall represent practice shall be six months (960 hours) 10

11 What is a position? Employment Practice 12 months 6 months 11

12 Activities with stakeholders Letters of intent: Trafikverket and governmental/municipal (Stockholm and Gothenburg) Employment Offices Regular contact between regional representatives of Trafikverket and the Employment Offices Employment Offices collaborate with contractors and consultancy companies Industry dialogue on long-term competence provision Workshops with the industry/stakeholders twice per year R&D project with Lund University 12

13 Follow-up The supplier reports at project meetings the number of hours worked in the contract by persons in the employment requirement target group (timesheet document). The overall result is calculated every four months. Trafikverket intends to publish on its website which suppliers have contributed to creating employment. 13

14 Procurement with employment clauses (yearly estimation) No. of contracts Requirement positions Bonus positions Sum Most positions are contracted in large and long-lasting contracts, often running 5 years or more. The suppliers can use the entire contract period to comply which has the consequence that positions might take long time to fulfil. 14

15 Result in contracts, both closed and open (until Mar 2018) Number of contracts with requirements Number of requirements in contracts Number of contracts with results so far Fulfilled positions % Female (appr.) Employment (12 months) 174 ~28 (=16%) ~330 months ~14% ~180 ~60 Practice (6 months) 192 ~39 (=20%) ~230 months ~24% 366 ~67 (18%) ~560 months 15

16 Overall quite positive feedback in the projects - but some challenges expressed the Employment office cannot find right candidates the supplier does not use the bonus opportunity it is not prioritised by the supplier 16

17 Other challenges with the model Division of responsibilities Trafikverket, Employment office, Supplier The suppliers wants to employ and take benefit of candidates longer than 6/12 months No adaptation of model and requirements to local labour markets (geography) 17

18 TMALL 0143 Presentation engelsk v 1.0 More information: Roger Rang roger.rang@trafikverket.se 18

19 19 Extra material: Contract clauses

20 Text in contracts - regarding basic requirement The basic requirement requires that the supplier shall have a meeting with the Employment Office to describe its personnel needs and be offered help with recruitment. The supplier shall have contacted the Employment Office and commenced collaboration no more than one month after the start-up meeting with the client. That this contact has been made shall be reported at the next site or planning meeting, or in some other way as directed by the client. 20

21 Text in contracts - requirement and bonus, example Requirement in AF: AFC/D.346 and AUC.396 Type of employment Practice 2 Employment 2 Bonus in EK/UK: section 6.13 Type of position Number of positions in the contract Maximum number of positions within the contract for which a Bonus per position bonus can be given Practice 3 SEK 60,000 Employment 3 SEK 240,000 The contract has a requirement for two practice positions and two employment positions, in AF. The costs of this requirement shall be incorporated in the tender. If the requirement is met, the supplier may receive a bonus if further employment is created. If the supplier in the example above provides 10 positions ( ) it fulfils the requirement (2+2) and is paid in addition for the 6 bonus positions (3+3). Total SEK 900,000 (3 x SEK 60, x SEK 240,000). 21

22 Text in contracts - penalty, example Penalty in: EK/UK section / section 5.53 The contractor/consultant shall observe the regulations that appear in TDOK 2017:0444. If the contractor/consultant does not demonstrate that it satisfies the employment requirements under //AFC.346//AFD.346//AUC.396, the contractor/consultant shall pay a penalty. The penalty amounts to SEK 240,000 per employment and SEK 60,000 per practice position by which the contractor/consultant fails to meet the requirement set. Example: Type of employment Number of positions in the contract Practice 2 Employment 2 In this case the maximum penalty is 2 x SEK 60, x SEK 240,000 = SEK 600,000 22